E-invoicing in the UK: what small businesses need to know

The UK has said it is moving to e-invoicing. Here is what it means and how to get ready without panic.

By the AvrioBooks team · · 5 min read

E-invoicing in the UK: what small businesses need to know

Reporting on this topic was still developing when we wrote this, and some details come from commentary rather than official documents. Check GOV.UK for the final rules before you act.

You may have seen headlines about e-invoicing. Here is what is reported, and what is simply good practice for now.

What it is

An e-invoice is a structured, machine-readable invoice sent directly between systems, with every field in a standard format. A PDF emailed to a customer is not an e-invoice, because a person still has to read it and key it in.

What is reported

  • The UK has said it intends to move to mandatory e-invoicing for VAT-registered businesses, with a reported start in April 2029.
  • The Peppol network is reported as the core standard.
  • Small businesses that are not VAT registered are reported not to be the main target.
  • The roadmap and details were still being published, so check GOV.UK.

What to do now

  1. Check that your records are digital and clean. Customer names, addresses, VAT numbers and tax rates need to be right.
  2. Use consistent items, descriptions and tax rates. Structured invoices depend on clean data.
  3. Plan to ask your software provider about its e-invoicing roadmap.
  4. Do not buy anything yet. There is time, and standards are still being settled.

Why it is good for you anyway

Fewer typing mistakes, faster payment and easier VAT. Read Making Tax Digital for VAT and the invoicing guide.

How AvrioBooks works

AvrioBooks sends invoices as PDFs and by email, and has a REST API for developers. It does not currently send structured e-invoices over Peppol. We will update this page when that changes. See invoicing software.

Frequently asked questions

What is e-invoicing?

Sending invoices as structured, machine-readable data directly between systems, not as a PDF.

Is a PDF invoice an e-invoice?

No. A PDF still needs a person to read and re-enter it.

When does it become mandatory in the UK?

A start in April 2029 for VAT-registered businesses has been reported. Check GOV.UK for the final timeline.

Does AvrioBooks support Peppol e-invoicing?

Not currently. It sends PDF and email invoices and offers a REST API.

Written by the AvrioBooks team. We build cloud accounting software for small businesses, freelancers and their accountants, from Qodexify. This article is general information, not tax, legal or financial advice. Check GOV.UK or ask an accountant about your own situation.
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